Jitters in private credit markets prompt comparisons to the run-up to the financial crisis,
plus we'll look at how Europe is leading investigations related to Jeffrey Epstein.
European officials and prosecutors tend to be more independent than their counterparts in the U.S.,
and so they may have more latitude to bring investigations against high-profile people who have ties to the government.
And President Trump orders the release of government files on UFOs after Obama says that aliens exist.
It's Friday, February 20th.
I'm Luke Vargas for The Wall Street Journal, and here is the AM edition of What's News,
the top headlines and business stories moving your world today.
Private credit markets are flashing warning signs after the industry's poster child,
Blue Owl Capital, blocked everyday investors from withdrawing their money from one of its funds.
The move got the attention of Democratic Senator Elizabeth Warren, who's calling for more oversight.
Meanwhile, nervous investors sent shares in other private credit firms lower,
reviving comparisons to the stress we saw in credit markets in 2007 just before the global financial crisis.
Journal finance editor Alex Franco says we don't yet know whether this is a canary in the coal mine,
but that investors are increasingly worried.
Blue Owls and asset manager they go out and raise money from investors and invest in making loans to junk rated companies that pay really high interest and the idea is
if you're an investor you're gonna get a really high return and that was a really hot thing for a while but then in the last few months it's really not very hot partly
because.
A lot of the loans were going to software companies,
and now people are worried about AI affecting the prospects for those companies.